United States Assistance to Central America and the Caribbean Message to the Congress Transmitting Proposed Legislation.

To the Congress of the United States:

Many of our neighbors in Central America and the Caribbean are in crisis—crisis marked by economic problems, terrorism, and popular frustration. The resolution of these problems in ways that will preserve the independence and security of these countries, while expanding democracy and supporting' human rights, is very much in the national interest of the United States.

Prompt and effective U.S. assistance is vital.

—Nicaragua's economy has been crushed by bitter and prolonged strife. We have been asked to help, and we are doing so. But more is needed to restore public confidence, private initiatives, and popular well-being.

—The Governments in El Salvador and Honduras have pledged democracy and moderation. These and other Central American countries are embarked on accelerated development efforts of direct benefit to the poor. Assistance in these efforts is essential in creating the conditions under which democratic institutions can grow and thrive.

—The countries of the Eastern Caribbean are young and struggling democracies. They need help now for nationbuilding and for economic development.

I am therefore today proposing action to expand our support for development and security in Central America and the Caribbean. This will augment our existing' development and security assistance programs in these regions, which in turn complement the contributions of several other governments and international agencies.

I have directed that, subject to normal congressional notification procedures, funds be reprogrammed for use in Central America and the Caribbean. These include:

—$5 million from the fiscal year 1980 Economic Support Funds for development projects in Central American countries other than Nicaragua.

—$10 million from fiscal year 1979 and fiscal year 1980 development assistance funds for public works and high employment impact projects in the Caribbean. These projects are an important part of our fiscal year 1979-80 contributions of $66.9 million budgeted for the Caribbean Development Group, chaired by the World Bank.

We are also reprogramming Food for Peace funds to increase food assistance in the area, especially in Nicaragua. We will also likely be reprogramming $5 to $10 million in Foreign Military Sales credits and International Military Education and Training funds for the Caribbean, and similar amounts for such programs in Central America. We are still working out the final details of these proposed reprogrammings and will fully inform the appropriate congressional committees of our proposed actions.

Reprogramming, however, is not enough. The enclosed bill would provide $80 million in flexible Economic Support funding, $75 million to assist in the reconstruction of the Nicaraguan economy and $5 million for early-impact development projects in other Central American countries.

I strongly urge rapid congressional action on this bill.

Such action will demonstrate that the United States can be relied upon to support democratic aspirations, the rebuilding of broken economies, and the security of our friends in this nearby region. Our additional funds for Central American development should substantially augment existing programs. Furthermore, we hope that other nations and international institutions will increase their efforts to accelerate the social and economic development of Central America.

With your help we can make clear where we stand.

JIMMY CARTER

The White House,

November 9, 1979.